The financial sector has become the biggest casualty of the recent economic turmoil with IT and BPO firms reducing their exposure to the sector to mitigate risks.
The Banking, Financial services and Insurance (BFSI) sector, which traditionally has had the largest share in terms of verticals served by IT firms, saw its share fall from over 30 per cent in 2007, to 16 per cent in 2009, a study by global consultancy Dun & Bradstreet said.
“The BPO firms are diversifying their business offerings and reducing predominant exposure to a single sector. Diversification is evident in other areas as well, with an increasing number of companies adding to their service portfolios,” Dun & Bradstreet COO India Kaushal Sampat said.
The healthcare vertical, which lost its share in 2008, went up a few places in this year’s survey, Sampat added.
Around 166 ITeS-BPO organisations, including captive outsourcing organisations were surveyed, which represents 50 per cent of the total Indian ITes and BPO employee base.
Among all outsourcing hubs, Bengaluru, the second-most preferred location last year, has emerged as the most preferred location for delivery centres this year followed by Chennai and Mumbai. Gurgaon has slipped from the fifth rank as the preferred location in the 2008 study, to eighth rank in our 2009 study.
Moreover, tier-II cities are being increasing sought by companies as they provide a cost advantage.
Source: http://economictimes.indiatimes.com/news/economy/indicators/BFSI-hit-most-by-economic-turmoil-Dun-Bradstreet/articleshow/5289235.cms
